The proliferation of patent trolls, formally known as Non-Practicing Entities (NPEs), has become a notable impediment to innovation, especially in sectors such as technology, software development, and biotechnology. Patent trolls exploit the patent system by acquiring patents not to further technological advancement or product development, but to generate revenue through aggressive litigation and settlement tactics. This paper explores the multifaceted impact of patent trolls on innovation, analysing their economic repercussions on businesses, startups, and the broader technology ecosystem. It delves into the legal mechanisms and strategies employed worldwide to counteract the activities of patent trolls, including legislative reforms, judicial decisions, and administrative measures. The study concludes by proposing a series of targeted reforms aimed at creating a more balanced and effective patent system. These reforms are designed to safeguard genuine innovation and technological progress while discouraging and mitigating the detrimental effects of exploitation and abusive patent litigation practices. By examining case studies, legal precedents, and policy initiatives, this paper seeks to offer a comprehensive analysis and practical recommendations for addressing the challenges posed by patent trolls in the contemporary patent landscape.